TipTVFinance

Gold – Will Yellen help metal breach long-term falling trendline

FX_IDC:XAUUSD   GOLD / US DOLLAR
Slide in gold             in run up to Yellen’s Jackson Hole speech clearly tells us the markets have positioned for somewhat hawkish talk. The metal deflated to monthly 50-MA level of $1317 yesterday after having failed earlier this month to hold above the larger falling trend line hurdle noted on the monthly chart.

Whether we go over and above descending trend line level or deflate further below $1300 mark almost entirely depends on Yellen’s tone.

Markets to read Neutral/data dependent Yellen as dovish

Note that neutral/data dependent Yellen is as good as dovish Yellen for the markets, given that at the start of the year Fed was seen raising rates at least four times this year.

Yellen needs to be outright hawkish i.e. drop clear hint of a rate hike in December. Only then, gold             prices could suffer losses below sub-$1300 levels.

Anything short of that and we are likely to see dip demand come back. Still, bullish bets are seen rising once prices breach falling trend line level on monthly closing basis. Such a move appears likely if Yellen comes out dovish today.
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out